The price in a perfectly competitive market is $8. At that price, a firm is willing...

The price in a perfectly competitive market is $8. At that price, a firm is willing to supply 250 of a good. The firm's average total cost (ATC) to supply this quantity will be $6.5 and its average variable cost (AVC) will be $5.

What is the firm's Total Cost?

A. 1750
B. 2125
C. 1625
D. 2000
E. 1500
F. 1875

Solutions

Expert Solution

total cost =average total cost * quantity

=6.5 *250

=1625

the total cost is $1625

Option C

Rahul Sunny answered 1 year ago

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